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Saudi Commerce Ministry: New Trade Laws Effective Thursday

Abdulrahman Al-Hussein, official spokesperson for the Ministry of Commerce, highlighted that next Thursday, Shawwal 5, marks a pivotal moment for Saudi Arabia’s business sector as the Kingdom’s new Commercial Register Law and Trade Names Law come into force.

Al-Hussein outlined key reforms under the Commercial Register Law, including the elimination of subsidiary registers, consolidating all entries into a single, unified commercial register. The law also removes the need to specify a registration city, allowing one commercial registration to be valid nationwide.

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Additionally, the law abolishes expiration dates for commercial registrations, requiring only an annual data confirmation. The commercial registration number will now serve as the establishment’s unified identifier, beginning with the digit (7). Existing subsidiary registries have a five-year grace period to comply with the new regulations.

Regarding the Trade Names Law, Al-Hussein explained that businesses can now reserve and register trade names in English, including letters and numbers—a shift from the previous Arabic-only policy. The law also permits trade names to be managed separately from establishments, enabling ownership transfers while preventing duplicate or similar names across businesses, even if their activities differ.

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Further provisions allow family names to be reserved as trade names and establish clear criteria to prohibit misleading or inappropriate names.

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